Paul Johnson Circle Internet Group — the powerhouse behind USD Coin (USDC) — delivered its first earnings report as a public company on Tuesday, and the numbers were anything but boring. Revenue rocketed 53% year-over-year to $658.1 million, fueled by a stablecoin surge, even as hefty IPO-related costs dragged the firm into a $482.1 million net loss.
Despite the red ink, investors cheered. Circle shares jumped more than 17% in early trading before settling up 2.5% by the close. Since debuting on the NYSE on June 5, the stock has exploded over 450%.
The driver? Stablecoin momentum. Circulation of USDC ballooned 90% from last year to $61.3 billion, securing its spot as the world’s second-largest dollar-pegged token — holding roughly 26% of the market, behind Tether’s 67%, per CryptoQuant.
IPO Hangover
Circle’s losses were largely accounting-driven. The company booked $424 million in non-cash stock-based compensation tied to its IPO, plus $167 million in fair-value adjustments on convertible debt. A year ago, Circle had posted a modest $32.9 million profit.
Still, CEO Jeremy Allaire struck an optimistic tone. Speaking to CNBC, he said the market’s enthusiasm reflects a bigger shift:
“Just like open internet, software, networks and utilities changed media, communications, retail and education, it’s happening in the financial system — and stablecoin money and blockchains are foundational to that future.”
Arc: Circle’s Next Big Bet
In a move that could reshape its ecosystem, Circle unveiled plans for a proprietary blockchain called Arc — built for stablecoin payments, foreign exchange, and capital markets use cases. Testing with developers will kick off this fall, with full integration across Circle’s products to follow.
A Regulatory Tailwind
Stablecoins have been enjoying renewed attention from banks and payment firms since the Trump administration rolled back Biden-era crypto restrictions. The recently passed GENIUS Act, the first U.S. federal crypto law, has opened the door for wider institutional adoption.
“Since our IPO and since the GENIUS Act passed, the number of major financial institutions engaging with us in banking, payments, and capital markets has surged,” Allaire said, hinting that even firms rumored to launch their own stablecoins are now exploring partnerships with Circle.
Outlook
For the rest of 2025, Circle projects $75–$85 million in additional revenue and expects USDC circulation to grow at a 40% compound annual rate. Adjusted operating expenses are pegged at $475–$490 million.
The message from markets was clear: for Circle, the stablecoin era is just getting started — and Wall Street is buying in.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
